[NYPOST] Bankrupt wedding gown retailer David’s Bridal received court approval on Friday to sell its business to asset manager Cion Investment Corp. in a no-cash transaction, reaching a deal to keep 195 stores open and avoid a total shutdown.US Bankruptcy Judge Christine Gravelle approved the sale at a court hearing in Trenton, NJ, saying that the company’s employees, landlords and creditors would be better off under new ownership than they would in a full liquidation.
"It’s essentially this or nothing," Gravelle said.
David’s Bridal said that its primary goal in bankruptcy was to find a buyer that could preserve its business.
The company signed non-disclosure agreements with 62 potential buyers but only received two offers besides the Cion bid, according to testimony from David’s Bridal’s financial adviser, Surbhi Gupta.
Cion, in addition to keeping stores open, agreed to pay certain of David’s Bridal’s debts, costs related to renewing or breaking leases at retail locations, and professional fees incurred during the company’s bankruptcy, according to court documents.